Trump Tariffs Wreaked Chaos on the Crypto Market

This October 10, a radical decision by Donald Trump, 100% customs duties on Chinese software, triggered an unprecedented storm. In a matter of hours, bitcoin collapsed, more than $16 billion vanished, and 1.6 million traders liquidated positions.

A political announcement, billions vanished

President Donald Trump triggered a financial earthquake this Friday by announcing new 100% customs duties on imports of critical Chinese software.

“As of 1^er November, we impose 100% tariffs on all imports of critical software from China »did he declared. The announcement comes amid growing tensions over rare earths and strategic technologies, with the United States reacting to Chinese restrictions on technology exports. This message, broadcast at a time of high stock market activity, immediately caused a domino effect on global financial markets.

The reaction in the crypto market was brutal and almost instantaneous. In a matter of hours, the entire ecosystem was swept away by a wave of forced liquidations of historic proportions. Here is the important facts of this rout:

• Bitcoin fell 8.4%, settling at $104,782, just days after an all-time high;

• Altcoins have seen losses between 20% and 40% in a single trading day;

• More than $16 billion in long positions liquidated;

• Nearly 1.6 million traders were affected by liquidations across all platforms;

• On Hyperliquid, one of the most active derivatives exchanges, 6,300 wallets were affected, resulting in $1.2 billion in losses.

An American trade policy announcement has never caused such an effect in the crypto sector. The speed of the fall, combined with the leverage widely used by investors, transformed a macroeconomic event into technical carnage. The market, overheated by the recent rise of bitcoin, collapsed, once again revealing the structural fragility of an ecosystem still largely dependent on emotions and political decisions.

The shadow of manipulation hangs over the crash

Suspicions arise on social networks and in several crypto analysis circles. According to reports, an anonymous trader made $88 million in less than 30 minutes using bitcoin just before Trump's announcement.

Other rumors, even more speculative, speak of a whale having doubled its short position half an hour before the presidential declaration, potentially collecting more than $200 million in gains. For the moment, there is no formal evidence to identify the entity behind these movements or to confirm any insider trading. The on-chain data analyzed remains incomplete and subject to interpretation.

Beyond these accusations, some analysts put forward less sensationalist structural explanations. According to several specialists, the movement could have been amplified by high-frequency trading algorithms, triggering automatic orders at the first corrections. The snowball effect, combined with reduced liquidity on certain markets, would then have caused a series of forced liquidations, without it being necessary to resort to theories of manipulation. Early signals in derivatives markets were minimal and did not clearly indicate the magnitude of the coming shock.

This shock of October 10, causing a decline in the price of bitcoin, reveals the extreme sensitivity of the crypto market to geopolitical instabilities. While some see it as a beneficial purge, others denounce a panic amplified by algorithms and leverage. Lacking proof of manipulation, the episode leaves room for uncertainty.